Listing ID: 80676
Business Overview
The business has established customers and had operated by taking reservations only.
This business is a well-established company and reached its 20th-year milestone. It has an excellent solid customer base and built up its reputation. The company engages in servicing afternoon tea and lunch items, hosting events, catering, and selling loose teas, tea wares, and other gift items.
Additionally, this business had been featured on many media publication platforms and has catered and served as a world-renowned leader. This is an ideal investment for any individual or family-owned business owners looking to establish another location on the island of Oahu and expand their customer base.
Business Highlights
20 years in business
Average annual sales $112k
Inventory including FFE assets $43k
Reservations only business activities
Frequent catering events
Loyal customers
Luxurious afternoon tea parties
Private venues, birthdays, bridal showers, catering, and more
Great brand recognition
Fantastic reviews and social media followers
The owner will agree to commit to working alongside the incoming owner for a period of two (2) months.
This business is suitable for any business owner who has the passion and enjoys servicing, connecting and creating an experience for customers. A business owner who is a trendsetter in the market social space would be helpful.
Asking Price: $120,000
Financial
- Asking Price: $120,000
- Cash Flow: $32,000
- Gross Revenue: $112,000
- EBITDA: N/A
- FF&E: $36,169
- Inventory: $6,945
- Inventory Included: Yes
- Established: 1999
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,675
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
During the training period, the owner will agree to commit to working alongside the incoming owner for approximately 10 hours a week for a period of two (2) months.
Retirement
Additional Info
The venture was established in 1999, making the business 23 years old.
The sale will include inventory valued at $6,945, which is included in the requested price.
The company has 4 employees and resides in a building with approx. square footage of 1,675 sq ft.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. However, the genuine factor vs the one they say to you may be 2 absolutely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of other reasons. This is why it is very crucial that you not rely totally on a vendor's word, yet instead, use the vendor's answer combined with your total due diligence. This will paint an extra sensible image of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that profit margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new clients? Many times, operating businesses have repeat consumers, which create the core of their daily earnings. Certain aspects such as new competition growing up around the area, road building, and also personnel turnover can affect repeat customers as well as adversely influence future earnings. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the possibility to develop a returning consumer base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional typical house earnings impact future earnings prospects?
